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US organic sales top $39 billion

Throughout America, people can’t get enough of organic, according to the Organic Trade Association (OTA). Sales of organic food and non-food products in the United States broke through another record in 2014, totalling $39.1 billion, up 11.3% from the previous year, according to the organisation’s latest survey on the organic industry. Despite the industry struggling […]

Throughout America, people can’t get enough of organic, according to the Organic Trade Association (OTA).

Sales of organic food and non-food products in the United States broke through another record in 2014, totalling $39.1 billion, up 11.3% from the previous year, according to the organisation’s latest survey on the organic industry.

Despite the industry struggling with tight supplies of organic ingredients, organic food sales in 2014, at $35.9 billion, posted an 11% rise, while organic non-food sales, at $3.2 billion, jumped almost 14% for the biggest annual increase in six years.

According to the OTA, the majority of American households in all regions of the country now make organic a part of their supermarket and retail purchases – from 68 to almost 80% of households in southern states, to nearly 90% on the West Coast and in New England, according to new market research released Wednesday at OTA’s Annual Policy Conference.

“On the heels of organic sales now nearing a milestone 5% share of the total food market, organic stakeholders have gathered in Washington to educate lawmakers and policymakers. Our latest industry data show robust demand and great opportunity for the organic sector,” said Laura Batcha, CEO and Executive Director of OTA. “OTA’s consumer survey has already found that organic doesn’t have any demographic boundaries; this additional new data prove it doesn’t have regional or partisan boundaries.”

OTA’s Organic Industry Survey is claimed to be the most accurate and comprehensive quantitative picture of the U.S. organic industry available. It was conducted and produced by Nutrition Business Journal. Over 200 companies responded to the survey. The full survey will be available in mid-May through OTA.

Also released were the results of data collected from over 100,000 households across the country through IRI Shopper Network of bar code items purchased at supermarkets and other retail outlets. Compiled by SPINS, a market research firm for the organic and natural industry, the findings are said to show booming growth trends for organic, and an increasing penetration by organic into conventional channels.

The U.S. organic sector has expanded significantly since OTA first began tracking the industry’s performance in 1997, it said. In 1997, organic food sales totalled around $3.4 billion, and accounted for under 1% of total food sales. In 2014, organic food claimed almost 5% of the total food sales in the U.S., and has consistently far outshone the 3% growth pace for the total food industry.

Organic fruits and vegetables continued to be the biggest-selling organic category in 2014 with $13 billion in sales, up 12% from the previous year, and making up more than 36% of all organic food sales. Of all the produce now sold in the United States, 12% of it is organic, a market share that has more than doubled in the past ten years when organic produce sales accounted for only 5% of the fruit and vegetable market.

The organic dairy sector posted an almost 11% jump in sales in 2014 to $5.46 billion, the biggest percentage increase for that category in six years.

Sales of organic non-food products – accounting for 8% of the total organic market – posted the biggest percentage gain in six years, with sales of organic fiber and organic personal care products the stand-out categories.